The document discusses a bicycle manufacturing company that targets the high-end bicycle market with a focus on quality and differentiation. The company promotes its brand through parties and trade shows instead of advertising. This niche strategy led to a 25% increase in bicycle sales despite the global recession. However, the company faces conflicts with its distribution channel and decisions around importing raw materials. It is also dependent on expensive, Italian-made components and has relatively low profit margins despite higher prices and increased sales. It is recommended that the company shift to machine-made components, source lower-cost components from countries like China, build its own brand image, and import materials directly to increase sales and profits.